Tuesday February 2 2016

In Summary

“Nine out of 10 transactions in Kenya are made using cash. This shows that there is tremendous opportunity for Lipa na M-Pesa as well as other cashless transaction channels to thrive in this market,” said Safaricom CEO Bob Collymore during the closing ceremony of the promotion.

Lipa na M-Pesa merchants across the country hit 36,000, even as Safaricom’s ‘Shinda 3 Bedroom’ promotion closed late January, the telecom announced.

The service was launched in June 2013 and has made partnerships with the public transport sector, government transactions as well as across banks, with users transacting Sh15 billion in the month of November 2015.

“Nine out of 10 transactions in Kenya are made using cash. This shows that there is tremendous opportunity for Lipa na M-Pesa as well as other cashless transaction channels to thrive in this market,” said Safaricom CEO Bob Collymore during the closing ceremony of the promotion.

Partnership with eight banks

Safaricom awarded three winners with the fully furnished three bedroom houses, spending Sh118 million on the promotion.

The promotion followed a partnership with eight banks late last year, with the view of driving up usage of the service.

Subscribers prefer usage of the service because of its convenience. Beyond traditional money transfer, customers can pay their utility bills such as water, rent and electricity, shop and pay their bus fares.

The retail mobile payments platform has so far enlisted businesses such as airlines, hotels, supermarkets, public service vehicles, oil marketers and schools.

Safaricom charges retailers a one per cent transaction processing fee on the Lipa na M-Pesa service, compared to the average three per cent levy merchants pay to use banks’ point of sale terminals.